Tan Boon Liat Building, a commercial property situated at 315 Outram Road, is currently on the market for collective sale at a reserve price of $1.15 billion. This freehold property is located next to Havelock MRT Station on the Thomson-East Coast Line (TEL), occupying two separate land plots of about 175,655 sq ft.
At present, the 15-storey building is renowned for being home to various furniture and home decor stores. Cushman & Wakefield, the property’s advisor and marketing agent, has stated that URA has issued an Outline Planning Advice on Jan 22 advising the site be rezoned to “Residential with Commercial at 1st storey” with a plot ratio of 4.9, an increase from the current 3.1. This will result in a 50% increase in the total allowable gross floor area (GFA), according to Cushman & Wakefield.
A map of Tan Boon Liat Building (Source: EdgeProp LandLens)
Additionally, URA has also advised on the alienation of several state land plots to be merged with the main plot. These plots of state land measure approximately 20,451 sq ft and are subject to final survey and approval from relevant authorities.
Cushman & Wakefield estimates that the potential GFA of the site, including the additional state land plots and any bonus GFA entitlement, is over 1.06 million sq ft. The first storey is able to accommodate a commercial GFA of up to 16,146 sq ft.
As part of the residential allocation, a minimum GFA of 161,459 sq ft will be reserved for Serviced Apartments II (SA2) where a minimum three-month stay is required. The allowable heights for the new development range from 130m to 180m.
Based on the reserve price, which includes land betterment charges on rezoning, the estimated premium payable on the remnant state land and the 10% bonus GFA applicable to the residential portion, the land rate is approximately $1,888 psf per plot ratio.
Recent industrial sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)
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Cushman & Wakefield’s senior director of capital markets, Christina Sim, is confident that the site will attract developers due to its freehold tenure and location on the TEL, which will be a draw for homebuyers.
She also mentioned that “The biggest game changer, however, is the fact that there will not be any Additional Buyer’s Stamp Duty (ABSD) to be levied on the potential purchase as the original site has a ‘Business 1’ zoning.”
The tender for the site will close on March 18 at 3pm.